General Market Risks
Market volatility, commodity prices, domestic and international economic conditions, political events, war, natural disasters, and changes in government, monetary policies, taxation, and other laws and regulations are all factors that influence the value of GeM and also are the reasons that GeM is here so that you can diminish any potential risks in your day to day currency value.
Changes in tax laws and policies (including changes in how GeM is taxed) could have a negative influence on the value of GeM and the return to token holders. It’s impossible to foresee how tax rules and policies will change in the future. Each token bearer is responsible for his or her own tax liability. Token holders should seek their own tax advice on their potential GeM purchase.
The Issuer’s operational risks include the possibility of system failure, regulatory requirements, documentation, risk, fraud, legal risk, and other unforeseen occurrences, all of which could reduce the value of GeM owned by a token holder. IPMB Custodian keeps the Certificates as custodian for the token holder to manage these operational concerns, and these are not automatically viewable or accessible to IPMB creditors. Furthermore, all Certificates are backed 100 percent by actual gold.
GeM Specific Risks
Risk of Illiquidity This is the possibility that a token holder will be unable to sell their GeM. The developer reserves the right to limit GeM trading for any reason, including to ensure that it complies with all legal obligations. The developer will try to set up a secondary market to purchase and sell GeM, although this is subject to legal and regulatory permissions. Regardless, a token holder with a properly validated GeM Certificates account will be able to exchange their existing GeM for Certificates, which can subsequently be exchanged for gold at our Mint.
Value of GeM and IPMB rises and falls
The market value of the underlying assets to which GeM/IPMB interests correspond is used to value them. As the price of gold fluctuates, the value of these assets will rise and fall.
However, the value of GeM should ultimately reflect the price of gold at the moment of transaction as each GeM can ultimately exchanged for physical gold.
IPMB coin price may diverge more significantly from its underlying issue price as the market may appreciate its convenience value as a currency and its economic value through airdrops, independently from IPMB Ltd gold inventories held against it. The developer makes no promises about the price of GeM nor IPMB in the future.
Potential Airdrops and Marketing Promotions
IPMB will from time to time invest back into the IPMB Token by way of gifting/ airdropping IPMB Tokens to owners of IPMB Tokens. This is part of IPMB’s marketing strategy to encourage investment. The amount of IPMB Tokens to be gifted/ airdropped will remain strictly discretionary to IPMB but factors such as the amount of trading revenue made by IPMB’s physical precious metals trading, the price of the IPMB Token, volumes of IPMB Tokens traded, and other factors will all be taken into consideration. Given that IPMB are experienced physical precious metals traders, IPMB expects significant annual trading revenues.
The above policy has been developed in light of the SEC standpoint that providing a defined yield on a digital token would bring the token into the definition of a security. IPMB avoids this by having a purely discretionary marketing policy of airdrops.
The GeM website, platform, software, and content are made available “as is” and “as available.” There is no guarantee that the GeM website and platform creation procedure will be error-free. There is always the possibility that the program will have flaws, vulnerabilities, bugs, or other issues that will result in the full loss of GeM, the website, or the platform.
The developer plans to mitigate this risk by continuing to enhance the platform and website, as well as proactively addressing any system flaws or vulnerabilities that could result in a significant loss of GeM.
Risk of losing access to GeM due to loss of private key(s)
To control and transfer GeM kept in a token holder’s digital wallet or vault, a private key, or a combination of private keys, is required. As a result, if the required private key(s) connected with a token holder’s digital wallet or vault housing GeM are lost, the token holder’s GeM will be lost as well. Furthermore, any third party that has access to such private key(s), including by acquiring access to a token holder’s login credentials for a hosted wallet service, may be able to misappropriate that token holder’s GeM.
Token holders must guarantee that their private keys are securely secured and that no unauthorized third parties have access to this information.
Risks Associated with the BSC Blockchain
Because GeM is built on the BSC blockchain, any failure, breakdown, or abandonment of the Ethereum blockchain, as well as other technological challenges, might have a major negative impact on or impede access to or usage of the platform or GEM. Furthermore, breakthroughs in cryptography or technology advances like as the advent of quantum computing could put GeM and the platform at danger by rendering the BSC blockchain’s cryptographic consensus mechanism ineffective. Because blockchain transactions involving tokens are potentially irreversible, losses resulting from fraudulent or unintentional transactions may not be recovered.